Nepal Telecom published it's fourth quarter results with almost 20% increase in Net profits. The company made an after tax profit of Rs. 1287 crores compared to Rs. 1077 crores previous year. The increase in the profit is majorily because of the increase in the income from services and interest rates in the market. Services increased by Rs. 194 crores while the interest revenue of the company has increase by Rs. 83 crores.
The growth of the company has slowed down because of the competition in the market from Ncell. The service income grew by just 7.74%. The company has a cash balance of Rs. 1683 crores.
The EPS of the company is Rs. 85.81 compared to Rs. 71.83 previous year. The PE ratio stands at Rs. 4.88 times compared to 6.40 times previous year. With such a low valuations, the stock price of the company is undervalued and should be bought for long term investments.
The share closed at Rs. 419 on the Asadh end, while the last traded price on nepal stock exchange was Rs. 410.
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